Ukraine crisis: McDonald’s, Starbucks, Coke, Pepsi suspend business in Russia

Read Time:3 Minute, 0 Second

McDonald’s, Starbucks, Coca-Cola, PepsiCo and General Electric – Global Brands Air and US company symbols may – all have announced them to temporarily suspend their business in Russia in response to the country’s invasion to Ukraine.

“Our values means we cannot ignore human suffering that is not necessary in Ukraine,” said the President and CEO of McDonald’s Chris Kempzinski in an open letter to employees.

Chicago-based Burger Giant said that it would temporarily close 850 stores but continued to pay 62,000 employees in Russia “who had poured their hearts and souls into our McDonald’s brand”. Kempcinski said it was impossible to know when the company would be able to reopen the shop.

“The situation is very challenging for global brands like us, and there are many considerations,” Kempcinski wrote in the letter. McDonald’s works with hundreds of Russian suppliers, for example, and serves millions of customers every day.

Last Friday, Starbucks said that it contributed a profit of 130 Russian stores and operated by the Kuwait-based Franchisee Group – for humanitarian aid efforts in Ukraine. But on Tuesday, the company changed the course and said it would be temporary for the temporary shops.

The Alshaya Group will continue to pay 2,000 Russian employees of Starbucks, President of Starbucks and CEO Kevin Johnson said in open letters to employees.

“Through this dynamic situation, we will continue to make decisions that are in accordance with our mission and values and communicate with transparency,” Johnson wrote.

Coca-Cola Co. Announced it suspended his business in Russia, but offered several details. Coke Mitra, Coca-Cola Coca-Cola Hellenic Botling Co., has 10 bottling factories in Russia, which is the biggest market. Coke has 21 percent of the shares in Coca-Cola Hellenic Botling Co.

Pepsico and General Electric both announced partial shutdowns of their Russian business.

Pepsi, based on purchase, New York, said he would suspend the sale of drinks in Russia. It will also suspend capital investment and promotional activities.

But the company said it would continue to produce milk, baby formula milk and baby food, some to continue to support 20,000 Russian employees and 40,000 Russian agricultural workers which are part of the supply chain.

“Now more than before we have to remain loyal to the humanitarian aspects of our business,” said CEO of Pepsico Ramon Lagara in email to employees.

General Electric also said in a Twitter post that some suspended its operations in Russia. GE said two exceptions would be important medical equipment and support for power services in Russia.

McDonald’s is among those who take the biggest financial hit. Unlike Starbucks and other fast food companies such as KFC and Pizza Hut, the Russian location owned by Franchisee, McDonald’s has 84 PR senses. McDonald’s also closed 108 restaurants he had in Ukraine and continued to pay the employee.

In the submission of recent regulations, McDonald’s said his restaurant in Russia and Ukraine contributed 9 percent of his annual income, or around USD 2 billion years ago.

Yum brand, KFC parent company and Pizza Hut, said Tuesday night planned for a while approaching 70 KFC restaurants belonging to the company in Russia. The company said it was also in talks with the franchisee to close all 50 pizza restaurants in Russia.

It has announced Monday that it contributed all the advantages of 1,050 restaurants in Russia with humanitarian efforts. It also suspends the development of new restaurants in this country.

Burger King said he was redirecting the benefits of 800 Russian stores for relief efforts and contributing USD 2 million in food vouchers to Ukrainian refugees.